4. OSA-Owatonna LetterSTATE OF MINNESOTA
OFFICE OF THE STATE AUDITOR
REBECCA OTTO
STATE AUDITOR
February 13, 2014
The Honorable Thomas Kuntz
Mayor, City of Owatonna
540 West Hills Circle
Owatonna, Minnesota 55060
Dear Mayor Kuntz:
SUITE 500
525 PARK STREET (651) 296-2551(Voice)
SAINT PAUL, MN 55103-2139 (651) 296-47(E (Fax)
state.auditor@osa.state.mn.us (E-mail)
1-800-627-3529 (Relay Service)
The Office of the State Auditor ("OSA") received concerns regarding the City of Owatonna
("City") and the use of the City shop wash bay by City employees to clean personal vehicles.
This letter will provide the City with guidance on this issue.
The OSA contacted the City and was informed that the City allows its employees to use the City
wash bay during non -working hours to clean personal vehicles. The City implemented this
practice in September 2011 and established procedures for the use of the wash bay by City
employees.' The City informed the OSA that the City Council wanted to provide a benefit for all
City employees after several years of wage freezes, layoffs, and reductions in LGA funding.
Generally, a city must have authority to expend public funds. Authority may be specifically
stated in a statute or implied as necessary to do something that is expressly authorized .2 In
addition, the expenditure of public funds must be for a "public purpose." A public purpose has
been defined by the Minnesota Supreme Court as "[s]uch an activity as will serve as a benefit to
the community as a body and which, at the same time, is directly related to the functions of
government."3 The primary objective of the activity must not be a private interest.4
' See City of Owatonna Memo from City Administrator Kris M. Busse to City Engineer Jeff Johnson, dated
September 15, 2011. Employees are required to sign and submit a liability waiver and release form to the City
before they may begin to use the City shop wash bay. The parameters for personal use of the City shop wash bay
include:
Use of the city wash bay is limited to city employee's person vehicle(s) only in which he or she is the
registered owner.
Only city employees are allowed in the wash bay area and permitted to use the power sprayer and hose unit.
Employees must bring their own car wash cleaning supplies.
No vehicle maintenance activity is permitted (e.g., oil changes, light replacement, etc.).
Use is limited to non -working hours only.
Doors must be closed when using wash bay.
Employees are not allowed to utilize any other city owned tools, equipment or supplies.
Employees are not allowed to utilize the hoist.
Employees must clean up after use and remove any mud and debris from their vehicles.
City wash bay must be secured when finished.
2 See, e.g., Mangold Midwest Co. v. Village of Richfield, 274 Minn. 347, 357, 143 N.W.2d 813, 820 (1966).
3 See Visina v. Freeman, 252 Minn. 177, 89 N.W.2d 635 (1958).
The Honorable Thomas Kuntz
Mayor, City of Owatonna
February 13, 2014
Page 2
More specifically, the Minnesota Attorney General's Office has taken the position that
nonmonetary benefits to public officers and employees must be specifically authorized by law.5
A public employee's personal use of public resources is a nonmonetary benefit to the public
employee.6
The OSA is unaware of any specific authority that would allow city employees to use city
facilities or equipment for non -work related purposes on any basis other than that afforded to the
general public.
We recommend the City consult with its attorney and/or seek an Attorney General's opinion
prior to permitting City employees to use the City shop wash bay to clean personal vehicles in
the future. The City Council's decision regarding the personal use of City resources by City
employees should be the result of thoughtful and open deliberation, considering all the practical,
legal, and political implications of the practice.
Conclusion
The Office of the State Auditor hopes the City finds this information to be helpful. This Office
will not be taking further action on this matter at this time. If you have any questions, please feel
free to contact me at (651) 297-7108 or Terrilyn.Diamondkosa.state.mn.us.
Sincerely,
/s/ Terrilyn Diamond
Terrilyn Diamond, Attorney
Office of the State Auditor
cc: The Honorable Les Abraham, City Council Member
The Honorable Dave Burbank, City Council Member
The Honorable Nathan Dotson, City Council Member
The Honorable Kevin Raney, City Council Member
The Honorable Greg Schultz, City Council Member
The Honorable Brent Svenby, City Council Member
The Honorable Raymond Truelson, City Council Member
Ms. Kris Busse, City Administrator
4 See Burns v. Essling, 156 Minn. 171, 194 N.W. 404 (1923).
5 See, e.g., Ops. Att'y Gen. 359b (Oct. 24, 1989) and 16lb-12 (Jan. 24, 1989).
6 Id.
7 See Minn. Stat. § 8.07 (Attorney General Opinions).